Question
On October 1, 2016, Riverbed Corp. issued $876,000, 6%, 10-year bonds at face value. The bonds were dated October 1, 2016, and pay interest annually
On October 1, 2016, Riverbed Corp. issued $876,000, 6%, 10-year bonds at face value. The bonds were dated October 1, 2016, and pay interest annually on October 1. Financial statements are prepared annually on December 31. (a) Prepare a tabular summary to record the issuance of the bonds and the adjustments to record the accrual of interest on December 31, 2016. (c) Prepare a tabular summary to record the payment of interest on October 1, 2017. (d) Prepare a tabular summary to record redemption of the bonds on October 1, 2026, their maturity date.
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